WALL STREET FRONT RUNNING THE BLIND MONEY, ETHER AND GOLD ROCKETING

To gain an edge, this is what you need to know today.

Blind Money 

Please click here for a chart of    Nasdaq 100 ETF (QQQ).

Note the following:

  • On the first two days of a new month, blind money pours into the market. Blind money is the money that is invested in the market without any analysis irrespective of market conditions.
  • Most of the blind money is invested in the afternoons. Wall Street knows this so they are buying now and bought on Friday.  Then they will turn around and sell it to the blind money at a profit.
  • The chart shows that in spite of blowout earnings from the likes of AAPL, GOOG, AMZN, MSFT, and FB, that  QQQ is consolidating below the resistance line.
  • The fact that QQQ did not break out above the resistance line on blowout earnings is a temporary warning sign.
  • After the blind money is invested, seasonally there is weakness in the first three weeks of May.  After the weakness, investors get enthused about Memorial Day and start running up the market.
  • It is simply prudent to keep the moratorium in place temporarily to not initiate or add to long-term positions. It is perfectly fine to initiate or add to short term positions from the long side or trades from the short (sell-short)  side with good setups.
  • The moratorium will be lifted when a signal is given by the ZYX Allocation Model. Please click here to see the 10 categories of inputs that go into the ZYX Allocation Model.
  • ZYX Allocation Model is an adaptive model.  In plain English, the means that the model automatically changes with market conditions.  Please click here to see how it works.
  • The static models constitute a vast majority of the models that are out there.  The problem with static models is that they may work under one set of market conditions but they stop working as market conditions change.

Ethereum Breaks $3,000

Crypto ethereum has broken above $3,000.  The present rally was triggered by the news of the European Investment Bank potentially conducting a digital bond sale on the ethereum blockchain network.

Bulls are shooting for ether to reach $10,000.

Ether is outperforming bitcoin.

Momo Crowd And Smart Money In Stocks

The momo crowd is 🔒 (To see the locked content, please take a 30 day free trial)  stocks in the early trade.  Smart money is🔒.

Gold

Gold is rocketing on the news that Chinese consumption of gold went up 93.9% in the first quarter of 2021 vs. the same quarter in 2020.  Even though momo is buying gold on the news, remember that the first quarter of 2020 was a pandemic quarter in China. China is the largest consumer of gold.

The momo crowd is 🔒 gold in the early trade.  Smart money is 🔒.

For longer-term, please see gold and silver ratings.

Oil

The momo crowd is 🔒 oil in the early trade.  Smart money is🔒.

For longer-term, please see oil ratings.

Markets

Our very, very short-term early stock market indicator is🔒.  This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.

Interest rates are ticking down and bonds are ticking up.

The dollar is weaker.

Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.

Gold futures are at $1786, silver futures are at $26.59, and oil futures are $63.46.

S&P 500 futures resistance levels are 4200, 4318, and 4400: support levels are 4000,3950  and 3860.

DJIA futures are up 185 points.

Protection Bands and What To Do Now?

It is important for investors to look ahead and not in the rearview mirror.

Consider continuing to hold existing positions. Based on individual risk preference, on dips, consider holding 🔒 in cash or treasury bills or short-term bond funds or allocated to short-term tactical trades and short to medium-term hedges of 🔒 and short term hedges of 🔒. This is a good way to protect yourself and participate in the upside at the same time.

You can determine your protection bands by adding cash to hedges.  The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.  If you do not hedge, total cash level should be more than stated above but significantly less than cash plus hedges.

It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.  When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.  High beta stocks are the ones that move more than the market.

 

To take a free 30-day trial to paid services to gain access to more opportunities, please click here.

This post was just published on ZYX Buy Change Alert.

 

Markets can generate substantial wealth for knowledgeable investors. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 2% of the content from our paid services. …TO RECEIVE REMAINING 98% INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES, TAKE A FREE
TRIAL TO PAID SERVICES.

Please click here to take advantage of a FREE 30 day trial.

FREE: SUBSCRIBE TO ‘GENERATE WEALTH’ NEWSLETTER

Related Posts

TECH STOCKS BREAK CRITICAL SUPPORT

To gain an edge, this is what you need to know today. Arora calls have been spot on.  Support for tech ...

WEEKLY STOCK MARKET DIGEST: BRAINARD AT FED WAKES UP – POTENTIAL FOR “SIGNIFICANT DECLINES” IN THE MARKET

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

MOMO CROWD GORGES ON THE BAD NEWS – HERE IS WHAT PRUDENT INVESTORS NEED TO KNOW

To gain an edge, this is what you need to know now. Momo Crowd Gorges Please click here for a chart of Nasdaq 100 ETF ...

IN YELLEN WALK BACK MOMO INVESTORS TRUST

To gain an edge, this is what you need to know now. Momo Trusts Walk Back Please click here for a chart of Nasdaq ...

MARKET FALLS ON YELLEN STATING THE OBVIOUS

To gain an edge, this is what you need to know now. Wall Street, the Fed and the government are motivated ...

REVIEW YOUR PORTFOLIO – TAKE PARTIAL PROFITS – BREAK OUT FAILS

To gain an edge, this is what you need to know today. For a while, we have been sharing with Arora ...

WEEKLY STOCK MARKET DIGEST: THANK YOU PRESIDENT BIDEN! AMERICANS’ INCOME JUMPS 21.1%

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

A ‘KEY REVERSAL’ SELL SIGNAL BUT MOMO BUYS THE DIP

To gain an edge, this is what you need to know now. ‘Key Reversal’ Please click here for a chart of  Nasdaq 100 ETF ...

MEDIA IGNORES POWELL’S FREUDIAN SLIP – MARKETS ARE FROTHY

To gain an edge, this is what you need to know now. Freudian Slip Please click here for a chart of Nasdaq 100 ETF (QQQ). Note ...

7 – 20% CORRECTION IF EARNINGS DO NOT MEET LOFTY EXPECTATIONS

Earnings Please click here for a chart of  Tesla (TSLA). Note the following: The Morning Capsule is about the big picture and not about ...

OPTIMISM OVER THE BUSIEST EARNINGS WEEK, FOREIGNERS RUSHING INTO INDIA

The Busiest Week   Please click here for a chart of  Nasdaq 100 ETF (QQQ). Note the following:  - The chart shows that the ...

WEEKLY STOCK MARKET DIGEST: HERE IS HOW TO REVIEW YOUR PORTFOLIO FOR BIDEN’S 43.4% CAPITAL GAINS TAX

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

MOMO GETTING SPOOKED ON CAPITAL GAIN TAX HIKE HEADLINE

Tax Hike Please click here for a chart of Nasdaq 100 ETF (QQQ). Note the following: The chart shows when the media highlighted a ...

THIS SIMPLE STRATEGY MADE 4117% PROFIT IN 2021 – TIME TO BECOME VERY CAUTIOUS

To gain an edge, this is what you need to know today. 4117% Return Please click here for a chart of S&P ...

DON’T BE MISLED BY FALSE REASONS FOR BITCOIN CRASH

  Money Laundering Crackdown Please click here for a chart of bitcoin crash (BTC). Note the following: Going into the weekend, sentiment on ...

WEEKLY STOCK MARKET DIGEST: JAPANESE BUYING MAY BE BEHIND THE MYSTERY THAT DROVE TECH STOCKS HIGHER

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

NEW BUY ZONES ON 44 STOCKS — SEMICONDUCTORS, ELECTRIC CARS, 5G, SOLAR, SPORTS BETTING AND MORE

Buy zones are very powerful.  This powerful technique is used by billionaires and hedge funds.  When a stock dips into ...

A SLIGHT HESITATION AS NASDAQ AT RESISTANCE

To gain an edge, this is what you need to know today. Hesitation At Resistance Please click here for a chart of Nasdaq 100 ...

BUY ZONES ON 25 ETFS THAT ALL STOCK MARKET INVESTORS SHOULD CONSIDER

Did you make 133% return with one simple ETF – internet ETF? Have you been profiting from the power of buy ...

WEEKLY STOCK MARKET DIGEST: THE MOST IMPORTANT KEY TO THE STOCK MARKET DIRECTION

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

Follow

Get every new post delivered to your Inbox

Join other followers